Tuesday, March 3, 2015

Resources for Landlord

As mentioned Real Estate is part of my investment portfolio and Rentals are a sub group of that.  Recently I learnt a lot from a crazy tenant and thought that I'd share one of the most important thing I learnt - where to go to for information.

If you have questions regarding your rights and what you can do as a landlord you can go to Service Alberta's Landlord/Tenants website for information, forms, common questions etc.  If you find this a lot to read you can also called the Service Alberta number (1-877-427-4088) and ask your questions to a live service representative.   

When I was dealing with my tenant I dreaded having to dig and navigate my way through Alberta's Landlords/Tenants Legislation.  The website and the Service Alberta number really helped make things clear.

Wednesday, February 11, 2015

My Investment Strategy Part 3 of 3 - Private Equity

This part of my investment strategy kind of happened by accident.  I had felt that there was something missing in my portfolio.  As a small shareholder in publicly traded companies I have very little control over what happened in the company.  Real estate investment means a huge chunk of money invested in a small number of properties in one type of investment.  I found out about the opportunity to invest in private equity when I went along with my sister to meet her investment advisor.  It seem to fit in between my equity and real estate investment.

I can participate in a small/medium sized company in lines of business I wouldn't be able to do myself such as factoring or flow through shares.  Also through my investment advisor and his firm, we have a lot more visibility over the company's decisions and strategies.

Thursday, January 29, 2015

My Investment Strategy Part 2 of 3 - Real Estate

No big surprise that part of my investment strategy is in Real Estate.  I invest in Real Estate mainly through rental properties with Sis.  Currently we have three properties in Calgary and one property in Edmonton.  We have two criteria when we evaluate a property for purchase:

Appreciation potential:
  • Is this property priced right or under/over priced?
  • What is the price we can likely negotiate?
  • How long do we expect to keep this house for?  What kind of appreciation can we expect when we sell?
  •  Are there any improvement costs we will need to invest immediately to bring this property up to par for renting? 
  • Are there any improvement costs we will need to invest over time to up keep or prepare the property for selling?
Cash Flow:
  • Will this property be cash flow positive?  i.e. we want the income to cover expenses so we don't have to inject money into the rental monthly.
This is the primary way we invest in Real Estate.  Then we also put a small budget aside for investment in the occasional property flips, and land investment through private companies.